Quick overview

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Gold declined as traders took profits after four days of gains driven by uncertainty over US trade policy and increased tensions in the Middle East.

The precious metal dropped as much as 1.6 percent before reversing some of its losses as Chinese traders returned on Tuesday following the Lunar New Year break.

Investors gravitated toward safer assets as the US battled Iran and President Donald Trump pledged new import tariffs, driving the metal up by more than 7% over the preceding four sessions. According to Song Jiangzhen, a researcher at Guangdong Southern Gold Market Academy, “moves within 2 percent are in the normal range of market volatility right now.” ”

Longer-term sentiment is still positive with the continued unpredictability in Iran and the US running the risk of isolation with its tariff policies,” he stated.

President Trump announced he would raise a global import tax to 15% after the US Supreme Court rejected his so-called reciprocal tariffs, leaving markets bewildered. Already tense relations are being exacerbated by some of America’s trading partners’ inability to reconcile the most recent tariffs with previous agreements.

According to a European Union assessment, Trump’s new policy would increase duties on some of its exports above what is allowed by a trade agreement.